SpaceX Faces Scrutiny Over Push for Spectrum Sharing
SpaceX Pressures Satellite Rivals to Share Airwaves
SpaceX has been using its dominant position as the leading rocket launch provider to encourage satellite competitors to share wireless spectrum rights with its Starlink broadband service, according to a report by the Wall Street Journal on Wednesday.
The report, citing individuals familiar with the matter, revealed that the Hawthorne, California-based company asked firms like Kepler Communications and OneWeb to share their spectrum rights before agreeing to launch their equipment. This move has raised concerns about whether SpaceX is leveraging its market power to gain an unfair advantage.
Legal Concerns Over Spectrum Agreements
Some satellite and rocket companies have become wary of these arrangements. Attorneys representing these companies met with the US Department of Justice’s antitrust division to discuss whether SpaceX’s approach constitutes an abuse of power, the report stated.
A spokesperson from OneWeb, a British government-backed company, mentioned that it signed new launch agreements with both SpaceX and NSIL following the loss of its launch capabilities due to the Russian invasion of Ukraine. This suggests that OneWeb may have had limited alternatives, adding further scrutiny to SpaceX’s business practices.
SpaceX’s Expanding Influence and Response to Disputes
Elon Musk, CEO of SpaceX, has been actively expanding Starlink’s reach worldwide. In 2023, SpaceX partnered with T-Mobile to launch a Falcon 9 rocket carrying Starlink satellites designed to beam phone signals directly to smartphones. This move aims to extend Starlink’s services to remote areas, increasing its customer base.
A recent dispute between Kepler and SpaceX over spectrum sharing required mediation by US and Canadian regulators. The resolution of this issue could open up broader access to the Canadian market for Starlink, highlighting the significance of spectrum agreements in SpaceX’s expansion strategy.
The US Federal Communications Commission (FCC) also recently authorised SpaceX and T-Mobile to enable direct-to-cell capability on Starlink satellites. This capability will provide cellular service in regions impacted by natural disasters, like Hurricane Helene, showing SpaceX’s potential to offer emergency services in critical situations.
